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When the components of income tax expense are disclosed on the income statement or footnotes, what will the components include?

When the components of income tax expense are disclosed on the income statement or footnotes, what will the components include?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Can someone please help me with this question? I am completley lost. thank you so much!

Christensen Inc. reported pre-tax accounting income of $90,000. The items below represent differences between book and taxable income: Rent received in advance Municipal bond interest not taxable Depreciation in excess of book 16,000 20,000 10,000 The company is subject to a 30% income tax rate. When the components of income tax expense are disclosed on the income statement or footnotes, what will the components include? Current A. B. OC D Deferred Total ITE 28,800 (7,800) 21,000 Current 22,800 Deferred Total ITE (1,800) 21,000 Current Deferred Total ITE 18,000 9,000 27,000 Current Deferred Total ITE 25,800 1,200 27,000
Transcribed Image Text:Christensen Inc. reported pre-tax accounting income of $90,000. The items below represent differences between book and taxable income: Rent received in advance Municipal bond interest not taxable Depreciation in excess of book 16,000 20,000 10,000 The company is subject to a 30% income tax rate. When the components of income tax expense are disclosed on the income statement or footnotes, what will the components include? Current A. B. OC D Deferred Total ITE 28,800 (7,800) 21,000 Current 22,800 Deferred Total ITE (1,800) 21,000 Current Deferred Total ITE 18,000 9,000 27,000 Current Deferred Total ITE 25,800 1,200 27,000
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